11th
Oct 2021
A rogue landlord couple who attempted to defraud Waltham Forest council of thousands of pounds in fees and licensing charges by using a ‘Halloween’ themed scam of letting properties to ‘ghost tenants’, has been handed a real ‘horrific’ fine of £190,000.
The rogue couple Mohamed Lahrie, 55, and wife Shehara, 51, told the council that six of their properties were being rented to one single tenant that was discovered to be their lettings agent.
Waltham Forest Council had no idea that the properties were HMOs (Houses in Multiple Occupation) and consequently failed to inspect the homes and lost HMO licence fees.
The couple’s defence asked the court, before sentencing, for clemency as the lawyer told Wimbledon Magistrates’ Court the six properties were just “one per cent” of their entire portfolio, which they have now had to sell.
Following a trial held in April the sentencing took place on 29th September when District Judge Andrew Sweeting fined Mr Lahrie £126,500 and Mrs Lahrie, who failed to appear in court, £60,500.
He said: “With all these cases there is an erosion in public confidence and that has a detrimental effect on society.
“It seems Mr and Mrs Lahrie have now accepted full responsibility, but all of this litigation would have been avoided some time ago had they taken the decision then that they have now.”
He stated that he had no other recourse than to penalise the couple with a “fair and proportionate” financial penalty that would make other offenders think twice about going down the same route.
The Lahries who live locally owned around 600 properties throughout East London using at least a network of 28 companies.
The court was told that one of the six properties in the case housed seven people under four different tenancies, however the landlords stated there was just the one household living in each property.
But Imran Khan QC the couple’s lawyer affirmed that the financial gain presumably for the council, that by not paying the six HMOs was “miniscule”.
He said: “Mr Mohamed arrived in this country with little money in his pocket and built up a portfolio over two or three decades, through hard work with his wife.
“That property portfolio has been engaged in providing safe and fit homes for many of the residents of Waltham Forest and these six represent one percent of that portfolio. The financial benefit to him was miniscule.
“Mr Mohamed, as a result of this case, has sold his portfolio of properties, he has sold them all.”
Waltham Forest council first began its legal case way back in 2017 which the Lahries delayed by a failed legal challenge.
Council lawyer Dean Underwood said: “The aim of the licensing regime is to protect the health and safety of those who occupy the most at-risk private premises, that is HMOs.”
He also told the court that the Lahries had profited “significantly more than market rent” by renting to separate tenants, however the exact sum was not disclosed to the court.
After the court’s ruling Lahrie told the Local Democracy Reporting Service: “I have learned my lesson and I regret what I did”.
The agency was cleared of charges brought by the council as it failed to supply circumstantial evidence in the proceedings, the firm entered into bankruptcy in May 2019.
News Archive »